TVS’ tyres business re-brands to 'TVS Eurogrip', to focus on exports and after-sales

"The slowdown has not impacted the tyre business when compared to the drop in two-wheeler sales mainly because the after-sales market has still been buoyant,” said P Srinivasavaradhan, president, TVS Srichakra, speaking to CNBC-TV18, “This has also let the company focus more on exports where we are not doing as well as our domestic sales. That export number is quite low. We want to gain more share in exports.”

At present, TVS Srichakra exports to 70 countries.

The fact that the company has been relying on the after-sales market to sustain business in a market that has seen a sustained slowdown in two-wheeler sales, has prompted TVS to focus on boosting contribution from this vertical.

“I would prefer a ratio of 45:55 for our original equipment manufacturer (OEM)-to-after-market sales ratio,” said Srinivasavaradhan, denying, however, that the slowdown is causing sleepless nights: “We feel the slowdown is temporary,” he added, “Statistics indicate that penetration level in India, especially in two-wheelers, is half of Indonesia. So, that gives you room for a lot of growth. If you take away this year and consider the previous 10 years, the CAGR for two-wheelers has been substantially higher with a high double-digit growth rate.”

CNBC-TV18 learns that TVS Srichakra plans to lay more focus on markets in Europe and the United States under its Eurogrip brand: “We will look to expand exports in Europe and America. We are already supplying tyres in Africa, Central America, Colombia and ASEAN countries. We will look to grow this portfolio, as well,” said Srinivasavaradhan.

Under the Eurogrip brand, TVS will also focus on making tyres across segments: from mopeds to 500cc bikes.